Homeowner's insurance covers you in case of a robbery or if your home and its contents are damaged because of a flood, fire, or a natural disaster. This policy also compensates individuals who sustain an injury in your home. However, you cannot get paid under homeowner's insurance if you commit fraud. Here is some basic information on homeowner's insurance fraud.  What Is Homeowner's Insurance Fraud? Fraud occurs when you knowingly submit false information to a homeowner's insurance agent.